| Purchasing Real Estate in Encinitas |
 |
 |
 |
| Written by Tim Holsten |
| Sunday, 25 October 2009 19:47 |
|
"We're timing the market. We think there's more room for correction. We're waiting for it to bottom out." Aren't these the comments of stockbrokers, investors and the Chairman of the Federal Reserve? Nope. Mrs. Smith, a senior citizen who recently relocated with her husband from Minneapolis to Encinitas to be near family, told me this.
"We're timing the market. We think there's more room for correction. We're waiting for it to bottom out." Aren't these the comments of stockbrokers, investors and the Chairman of the Federal Reserve? Nope. Mrs. Smith, a senior citizen who recently relocated with her husband from Minneapolis to Encinitas to be near family, told me this. They opted to rent first before buying Encinitas homes for sale. As an Encinitas Realtor I instinctively asked "Why?" Her answer, "We're timing the market. We think there's more room for correction. We're waiting for it to bottom out." It was an interesting response from a senior citizen couple that planned on retiring here. These comments by this nice lady, who was elated at having finally escaped her cold winters, are common among buyers. Where did Mrs. Smith gain this wisdom of the housing market? She simply read the paper. There had been four years of data that proved the market has been in a general decline since late 2005. Certain segments of Encinitas real estate, like the lower priced Encinitas condos for sale, have started correcting, but in many segments, especially the higher ones, the rebound point is still uncertain. So this makes Mrs. Smith a shrewd buyer. Or, perhaps it does not. First, the Smiths will need to take out a small mortgage to buy a property. How long will rates be near the historic lows they are at today? We don't know. Not forever though. I then asked, "How will you know when the market bottoms out at your price point?" "We'll know the market has bottomed out when the paper says so," Mr. Smith said. "I agree," I said. "Though, aren't you concerned they won't declare it until after many months of positive data, and by that point don't you think there will be a lot more buyers to compete with?" Third, will the Smiths be able to pinpoint the market bottom when it's reached? Analysts will argue at length over this and when they finally agree, it's going to be a competitive buyers market. I respect and appreciate Mrs. Smith's conservative approach to the market. I'm sure all of the other buyers out there looking for that same single story appreciate her approach to. Mrs. Smith, if you're going to retire in Encinitas, isn't it time to start looking for the perfect home now? DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. If you are buying or selling Encinitas real estate than you need to visit Encinitas homes for sale, your complete resource for everything you need to know when buying a home in North County. |
| Last Updated on Saturday, 31 October 2009 21:59 |